§ 105-129.16D. (Repealed effective for facilities placed in
service on or after January 1, 2014) Credit for constructing renewable fuel
facilities.

(a) Dispensing Credit. - A taxpayer that constructs
and installs and places in service in this State a qualified commercial
facility for dispensing renewable fuel is allowed a credit equal to fifteen
percent (15%) of the cost to the taxpayer of constructing and installing the
part of the dispensing facility, including pumps, storage tanks, and related
equipment, that is directly and exclusively used for dispensing or storing
renewable fuel. A facility is qualified if the equipment used to store or
dispense renewable fuel is labeled for this purpose and clearly identified as
associated with renewable fuel.

The entire credit may not be taken for the taxable year in
which the facility is placed in service but must be taken in three equal annual
installments beginning with the taxable year in which the facility is placed in
service. If, in one of the years in which the installment of a credit accrues,
the portion of the facility directly and exclusively used for dispensing or
storing renewable fuel is disposed of or taken out of service, the credit
expires and the taxpayer may not take any remaining installment of the credit.
The taxpayer may, however, take the portion of an installment that accrued in a
previous year and was carried forward to the extent permitted under G.S. 105-129.17.

(b) Production Credit. - A taxpayer that constructs
and places in service in this State a commercial facility for processing
renewable fuel is allowed a credit equal to twenty-five percent (25%) of the
cost to the taxpayer of constructing and equipping the facility. The entire
credit may not be taken for the taxable year in which the facility is placed in
service but must be taken in seven equal annual installments beginning with the
taxable year in which the facility is placed in service. If, in one of the
years in which the installment of a credit accrues, the facility with respect to
which the credit was claimed is disposed of or taken out of service, the credit
expires and the taxpayer may not take any remaining installment of the credit.
The taxpayer may, however, take the portion of an installment that accrued in a
previous year and was carried forward to the extent permitted under G.S. 105-129.17.

Notwithstanding subsection (d) of this section, this section
is repealed effective for facilities placed in service on or after January 1,
2017, in the case of a taxpayer that meets both of the following conditions:

(1) Signs a letter of commitment with the Department of
Commerce on or before September 1, 2013, stating the taxpayer's intent to
construct and place into service in this State a commercial facility for
processing renewable fuel.

(2) Begins construction of the facility on or before
December 31, 2013.

(b1) Alternative Production Credit. - In lieu of the
credit allowed under subsection (b) of this section, a taxpayer that constructs
and places in service in this State three or more commercial facilities for
processing renewable fuel and that invests a total amount of at least four
hundred million dollars ($400,000,000) in the facilities is allowed a credit
equal to thirty-five percent (35%) of the cost to the taxpayer of constructing
and equipping the facilities. In order to claim the credit, the taxpayer must
obtain a written determination from the Secretary of Commerce that the taxpayer
is expected to invest within a five-year period a total amount of at least four
hundred million dollars ($400,000,000) in three or more facilities. The credit
must be taken in seven equal annual installments beginning with the taxable
year in which the first facility is placed in service. If, in one of the years
in which the installment of credit accrues, a facility with respect to which
the credit was claimed is disposed of or taken out of service and the
investment requirements of this subsection are no longer satisfied, the credit
expires and the taxpayer may take any remaining installment of the credit only
to the extent allowed under subsection (b) of this section. The taxpayer may,
however, take the portion of an installment under this subsection that accrued
in a previous year and was carried forward to the extent permitted under G.S.
105-129.17. Notwithstanding the provisions of G.S. 105-129.17, a taxpayer may
carry forward unused portions of the credit allowed under this subsection for
the succeeding 10 years.

If a taxpayer that claimed a credit under this subsection
fails to meet the requirements of this subsection but meets the requirements of
subsection (b) of this section, the taxpayer forfeits the difference between
the alternative credit claimed under this subsection and the credit allowed
under subsection (b) of this section. A taxpayer that forfeits part of the
alternative credit under this subsection is liable for the additional taxes
avoided plus interest at the rate established under G.S. 105-241.21, computed
from the date the additional taxes would have been due if the credit had not been
allowed. The additional taxes and interest are due 30 days after the date the
credit is forfeited. A taxpayer that fails to pay the additional taxes and
interest by the due date is subject to penalties provided in G.S. 105-236.

(c) No Double Credit. - A taxpayer may not claim the
credits allowed under subsections (b) and (b1) of this section with respect to
the same facility. A taxpayer that claims any other credit allowed under this
Chapter with respect to the costs of constructing and installing a facility may
not take the credit allowed in this section with respect to the same costs.